College of Behavioral & Social Sciences

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The collections in this community comprise faculty research works, as well as graduate theses and dissertations..

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Author: search.filters.author.Ausubel, Lawrence M.End date: 1999

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    Synergies in Wireless Telephony: Evidence from the Broadband PCS Auctions
    (Blackwell, 1997) Ausubel, Lawrence M.; Cramton, Peter; McAfee, R. Preston; McMillan, John
    We examine bid data from the first two broadband PCS spectrum auctions for evidence of value synergies. First, we estimate a benchmark regression for the determinants of final auction prices. Then, we include variables reflecting the extent to which bidders ultimately won or already owned the adjacent wireless properties. Consistent with geographic synergies in an ascending-bid auction, prices were higher when the highest-losing bidder had adjacent licenses. The footprints of winning bidders suggest that they were often successful in realizing these synergies.
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    Auctioning Securities
    (University of Maryland, 1998-03) Ausubel, Lawrence M.; Cramton, Peter
    Treasury debt and other divisible securities are traditionally sold in either a pay-your-bid(discriminatory) auction or a uniform-price auction. We compare these auction formats with a Vickrey auction and also with two ascending-bid auctions. The Vickrey auction and the alternative ascending-bid auction (Ausubel 1997) have important theoretical advantages for sellers. In a setting without private information, these auctions achieve the maximal revenue as a unique equilibrium in dominant strategies. In contrast, the pay your-bid, uniform-price, and standard ascending-bid auction admit a multiplicity of equilibria that yield low revenues for the seller. We show how these results extend to a setting where bidders have affiliated private information. Our results question the standard ways that securities are offered to the public.